DEFINITION of 'Allied Lines'

Any type of property-casualty insurance that is closely related to fire insurance coverage. Allied lines coverage is almost always taken out along with a standard fire insurance policy. Allied lines insurance can include coverage for such things as accounts receivable, data-processing equipment, water damage and vandalism.

BREAKING DOWN 'Allied Lines'

Allied lines insurance covers a variety of ancillary coverages in addition to those listed above, including but not limited to:

• Demolition charges
• Increased cost of construction
• Malicious damage
• Earthquakes
• Radioactive contamination
• Sprinkler leakage
• Standing timber

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